According to an insider (there always is, isn’t there?)
“Baron Cohen planned to appear onstage as a blue-skinned, female Na’vi, with Stiller translating “her” interplanetary speech. As the skit went on, though, it would become clear that Stiller wasn’t translating properly, because Cohen would grow ever more upset. At its climax, an infuriated Baron Cohen would pull open “her” evening gown to reveal that s/he was pregnant, knocked up with Cameron’s love child, and would go on to confront her baby daddy as if s/he were on Jerry Springer." By all accoutns, it might upset Jim Cameron, so they couldn’t afford a walk out during the show! I’m not sure about that, but its probably a bit too risqué for the Oscar’s than anything else!